Emerging Markets

The Best Values in China's Stock Market

The shares are cheap, but recent data are unreliable and growth has slowed. Here are the smart deals.

There's a case to be made that Chinese stocks are dirt cheap and ready to rebound. Since early December, the Hang Seng China Enterprises Index has lost nearly a fifth of its value. This past Monday it hit a 10-year low, trading at only 5.6 times forward earnings and just 0.9 times book value. A 4% jump in prices on Tuesday and Wednesday reminded analysts and investors that Chinese stocks have had three major rallies...